Small business owners are notorious for keeping an eagle eye on their finances. After all, every penny counts when you’re trying to make enough money to pay both your business expenses and your personal expenses.
And for the most part, bootstrapping a business helps us diversify our skills. We become better at managing, sales, accounting, even coffee-making.
But sometimes we get it wrong. We think we can do everything for our business, and our business suffers as a result. Here are 3 areas you might be tempted to DIY, but do so at your own peril. Continue reading
Starting a business provides one set of issues for entrepreneurs, but running a business brings up an entirely different set of concerns. Which of these keep you up at night?
1. You’re growing faster than you can handle
This is a good problem to have, but one that needs addressing, nonetheless. If your business is moving faster than you are, you’ll struggle to keep up, and you and your staff will be overwhelmed with work.
Solution: Get help immediately. Hire employees — even if it’s just temporary or part time — so that your existing staff doesn’t get inundated, frustrated, and quit. Reinvest your profits back into the company wherever you need it: extra inventory, more space, better equipment. Continue reading
I recently incorporated my business using CorpNet (here’s my story on the experience), a business filing company. They’re also a client of mine, so let me disclose that up front.
When you start talking about articles of incorporation and statements of information, my head swims. But if you are a corporation or LLC, you know there are certain documents you have to file to stay compliant, at least in the US. Miss a filing or fee payment, and your entity may be dissolved. Then you’ll have to start over again.
CorpNet recently launched its Business Information Zone (B.I.Z.) to help keep entrepreneurs on top of their business filings. The service is free, and you don’t have to be incorporated through CorpNet. You can store your filing documents in the cloud on the platform, making it easy to retrieve those documents when you need them (I’m always looking for my EIN document). And you’ll get compliance and tax alerts to help you stay on time and compliant.
Accounting and finance are a part of every business, no matter the size. And the faster you grow, the sooner you have to decide how you’ll manage your accounts. It’s a tough decision: should you manage your own accounting, hire someone in-house, or outsource it? The answer depends on several factors:
- Your time and financial resources
- Your comfort with using your accounting program and filing taxes
- Whether there is benefit in hiring a professional
The DIY Approach
For many business owners, updating their accounts is just another daily task they don’t mind doing. If you understand how to record income and expenses and run reports like Profit and Loss Statements, and if your taxes don’t require sophisticated wrangling, you should be fine doing your own accounting. Also, many programs will automatically download your bank transactions, making it even easier to manage finances. Continue reading
Posted in Tax